Business Case Studies & Business Publications

Eli Lilly and GLP-1s: Direct-to-Consumer...

McDonald, Rory;Klo...

Case

Eli Lilly and GLP-1s: Direct-to-Consumer Pharma?

McDonald, Rory; Klopfenstein, Amy; Bhat, Akash; Chapman, Louis; Ivester, Kyle

S-0499 | Published August 25, 2026 | 14 Pages Case

Collection: Darden School of Business

Product Details

Set in November 2023, this case asks students to consider whether Eli Lilly and Company (Lilly) should launch LillyDirect, a direct-to-consumer (DTC) digital health-care platform. The case examines the complex US pharmaceutical ecosystem and the roles of insurers, pharmacy benefit managers (PBMs), wholesalers, prescribers, and pharmacies in determining drug access and pricing. It also explores growing pressures on traditional pharmaceutical companies, including industry consolidation, political scrutiny of prescription drug prices, emerging digital-health competitors, and intensifying competition in the rapidly expanding GLP-1 market. At the conclusion of the case, students must consider how Lilly should balance the benefits of launching a new, disruptive delivery model against the risks to its existing business and stakeholder relationships. This case would be suitable for MBA and executive education courses on strategy and disruptive innovation, as well as specialized courses on the US pharmaceutical industry.